FULL-YEAR SURVEY RESULTS 2018 - Freeman Media
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SURVEY REPORT 2017
F U L L- Y E A R S U R V E Y R E S U LT S 2 0 1 8
ENERGY NEWS
www.energynews.co.nz
Introduction
Energy News and ABB are delighted to announce the full- A breakdown of respondents by organisation type is available on
year results of the New Zealand Electricity Survey 2018. This page 27. This year respondents included consultants, distributors and
document contains results from three of our quarterly surveys gentailers. The survey questions and range of responses were guided
that have already been released, and results from the fourth and by an advisory panel chaired by John Hancock. The panel members
final instalment – focusing on technology and data. are listed on page 3 and we would like to thank them for their input.
The survey, now in its seventh year, had a face-lift in 2018. We moved Please email any feedback to kate.barker@freemanmedia.co.nz. We
from an annual instalment to four shorter quarterly surveys. welcome any and all suggestions for questions, themes and responses
for 2019.
This allowed us to ask the electricity sector thought-provoking
questions and gauge its response throughout the year as different Kate Barker – Research Analyst
announcements were made and new policy signalled. Freeman (publisher of Energy News)
Thank you to everyone who took the time to complete the surveys
About ABB
each quarter – we received almost 1,000 responses in total.
ABB (ABBN: SIX Swiss Ex) is a pioneering technology leader in
During the year we polled the sector on everything from generation electrification products, robotics and motion, industrial automation
plant to electric vehicles, new Government policy directions to the and power grids, serving customers in utilities, industry and transport
importance of cyber security. & infrastructure globally. Continuing a history of innovation spanning
We brought back a feature for the third year running where we asked more than 130 years, ABB today is writing the future of industrial
the industry when they expected to see different milestones achieved. digitalisation with two clear value propositions: bringing electricity
Notable changes from last year’s answers include: from any power plant to any plug and automating industries from
natural resources to finished products. As title partner of Formula E,
• The sector doesn’t expect to see a single solar asset larger than 5
the fully electric international FIA motorsport class, ABB is pushing
MW until 2024, three years later than responses showed last year
the boundaries of e-mobility to contribute to a sustainable future. ABB
• Respondents also pushed out the next network amalgamation to operates in more than 100 countries with about 135,000 employees.
2022, after thinking it was just around the corner in 2017 www.abb.com
• Everyone underestimated the rapid growth in electric vehicle
About Energy News
ownership. Most respondents thought we wouldn’t see 10,000
Energy News is New Zealand’s online news and information service for
EVs in this country until 2020, but that milestone was reached in
the energy sector. The website (www.energynews.co.nz) was launched
September
in 2008 and now boasts more than 5,000 readers every month from
Responses to other questions throughout the year ranged from equal 300 subscribing organisations. Its readership consists of New Zealand
views on all options to heavily supporting a particular direction. energy sector organisations and service companies spanning the
A majority of the respondents – 62% - felt that after a year of being electricity, oil and gas, petroleum and alternative energy value chain.
in power, the Labour Government was generally heading in the right The subscription-based site provides daily news, executive interviews,
direction when it came to energy policy. opinion and commentary. It also hosts a suite of information resources
However, when asked specifically about the offshore oil and gas ban including two large databases of sector participants and energy
announced in April, 40% thought it was a lose-lose situation, while resources. Other information tools include 30-minute electricity prices,
48% supported it. supply and demand monitoring, petroleum permit deadline summaries
and an oil price monitor.
There were split views over which type of 50MW-plus generation asset
should be prioritised to meet the changing needs of this country’s About Gentrack
electricity demand, although geothermal squeezed ahead of the other Pairing deep market knowledge with essential software for essential
options for the second year running. services, Gentrack currently enables over 90 of the world’s most
progressive utilities to lower service costs, foster innovation and
Results from our latest survey show most respondents think that off-
confidently navigate market reform.
grid or grid-edge distributed generation has already reached cost
parity for network companies in some situations. They also picked Gentrack Velocity is a leading billing and customer engagement
data management and analytics as the highest technology-related solution for utilities, providing a full range of proven capabilities along
priority for the sector in 2019. You can see the full report from our with hosted and managed services options for energy networks, new
fourth quarter survey on page 4. entrant energy retailers, and larger utilities in competitive markets,
where flexibility, uniqueness and compliance are essential.
www.gentrack.com
ENERGY NEWS 2
www.energynews.co.nz
Advisory panel
John Hancock (Chair) Andrew Renton - Transpower
John Hancock is an independent consultant to utility Andrew presently works in Transpower’s Grid
companies and their suppliers. He is the independ- Development Division. Andrew’s role involves
ent chair of the Electricity Authority’s Wholesale investigating and providing holistic, pragmatic and
Advisory Group, secretariat to the NZ Smart Grid strategic advice, on suitable and cost effective
Forum and has chaired the advisory panel for this transmission solutions as well as new developments
survey since its inception in 2012. and technologies.
Jenny Cameron (formerly) ERANZ Greg Skelton – Wellington Electricity
Jenny Cameron joined ERANZ as its inaugural Chief Greg has been the Chief Executive of Wellington
Executive in February 2016. Electricity since April 2009. Prior to his appointment
Ms Cameron joined ERANZ from the Brewers’ As- as Chief Executive, Greg was the Chief Executive of
sociation of Australia and New Zealand where she Alpine Energy Limited and has held various senior
held the role of Director of External Relations. Prior management roles in the electricity industry.
to this, Ms Cameron served as a diplomat with the
NZ Ministry of Foreign Affairs and Trade including a
posting in Tokyo, and an assignment in Manila.
Craig Evans – Electricity Authority Charles Teichert – Nova Energy
Craig is Manager Retail and Network Markets at the Mr Teichert has been with Nova Energy since
Electricity Authority of New Zealand. He leads the 2000 and is currently responsible for strategy
team developing electricity market arrangements development, key commercial arrangements,
that deliver long-term benefits to consumers from commodity risk management and regulatory affairs.
the greater choice and control over their electricity Mr Teichert began his career in the energy sector
supply that technology is now making possible. joining the ECNZ wholesale electricity trading team in
1996 followed by short stints at Genesis Energy and
Contact Energy.
Louise Griffin – Contact Energy Neil Wembridge – Freeman
Louise joined Contact in 2008 and has held roles in Neil Wembridge is the General Manager at
communications, regulatory affairs and as an advi- Freeman, which sees him take responsibility for the
sor to the CEO. These roles, coupled with her time commercial side of the energy sector products of
working on the Kupe Gas Project have provided her Freeman, including all events, surveys, stakeholder
with an in depth understanding of New Zealand’s management and business development.
gas and electricity sectors.
Tony McGlennon – Gentrack Angus Watson – Meridian Energy
Tony is Gentrack’s New Zealand Country Manager Angus is the Energy Modelling Analyst within
and has been working across the energy sector for Meridian’s Strategy and Performance Team. This
10+ years, delivering essential software solutions team is responsible for monitoring and advising the
for retailers and networks. He is actively engaged executive team on opportunities across the electricity
with energy utilities, spearheading all aspects of sector, in addition to exploring different time horizons
Gentrack’s service delivery business in NZ and the from both an operational and strategic focus.
Pacific.
Ewan Morris – ABB
Ewan Morris is the Managing Director of ABB New
Zealand, a role he has held since March 2014. He
has been with ABB since 1988, and has enjoyed a
long and extensive career in the company across five
countries including New Zealand, Australia, Sweden,
Malaysia and Switzerland.
ENERGY NEWS 3
www.energynews.co.nz
QTR 3 - 2018
4th quarter – Technology and Data – all change please!
In response to our 4th quarter survey, the sector thought:
Cost-parity We want
is here access
Off-grid and grid-edge A centralised
distributed generation has repository that
reached cost-parity as a accredited third parties
solution for some network can access is the best
applications way to open access for
consumption data
Are we secure? Data is king
Cyber security Data management
breaches are and analytics will be the
happening within the highest priority for most
sector, but they are not of the sector in 2019
overly common
ENERGY NEWS 4
www.energynews.co.nzQTR 4 - 2018
Question 1
Demand is growing for open access to consumption data. What is the best way to make this happen? Choose one option:
The existing meter provider and meter reading
firms should put in the investment to roll-out
this technology and then own and manage
access to the data
A different
arrangement
8%
The current 9%
arrangement is
working fine - don’t
go down the open
access path 9% A centralised
repository should
50% be created that third
parties can access
after completing an
accreditation process
24%
Existing infrastructure owners should
make the investment but customers
should own the data and decide who
they allow to access it
A centralised repository should be created that third parties can access after
completing an accreditation process – 50%
Existing infrastructure owners should make the investment but customers should own the
data and decide who they allow to access it – 24%
The current arrangement is working fine - don’t go down the open access path – 9%
A different arrangement – 9%
The existing meter provider and meter reading firms should put in the investment to roll-out
this technology and then own and manage access to the data – 8%
ENERGY NEWS 5
www.energynews.co.nzQTR 4 - 2018
Question 2
How far away do you think off-grid or grid-edge distributed generation is from cost parity compared to a grid-supplied solution (such as
upgrading existing network assets)? Choose one option you most agree with:
We shouldn’t be thinking of non-grid connected
solutions, it decreases the value of existing system
solutions and is not efficient
2 years
10 years 3%
5%
18% In certain situations
- such as with some
rural customers
- off-grid options
53% are already the
more economic
choice compared
to traditional
approaches
21%
5 years
In certain situations - such as with some rural customers - off-grid options are
already the more economic choice compared to traditional approaches – 53%
5 years – 21%
10 years – 18%
2 years – 5%
We shouldn’t be thinking of non-grid connected solutions, it decreases the value of
existing system solutions and is not efficient – 3%
ENERGY NEWS 6
www.energynews.co.nzQTR 4 - 2018
Question 3
This question is brought to you in partnership with Gentrack: Digital transformation of a business can deliver huge benefits such as better
customer experience, agility and innovation. What is the biggest digital transformation challenge your organisation faces? Choose one option:
Governance inertia -
hesitation towards change at
a board or executive level Access to people - finding those
with the right skills or knowledge
13% to achieve our goals
28%
Cost - access to
the considerable 18%
funds needed for the
investment
21%
Access to resources - finding 20% Out-of-date regulations hinder
the right technologies and or prohibit customer-driven
systems to make a move changes we need to make
towards digital transformationQTR 4 - 2018
Question 4
Have you seen evidence of cyber security breaches or attempts in the New Zealand electricity sector - other than instances picked up by the
media? Choose one option:
Yes, multiple times
frequently in my
organisation
From time to time but it’s not
overly common
16%
37%
19%
Never - this is a bit of a
non-issue for electricity
28%
Not in my organisation but I hear about
frequent attempts in others
From time to time but it’s not overly common – 37%
Not in my organisation but I hear about frequent attempts in others – 28%
Never - this is a bit of a non-issue for electricity – 19%
Yes, multiple times frequently in my organisation – 16%
ENERGY NEWS 8
www.energynews.co.nzQTR 4 - 2018
Question 5
Thinking ahead to 2019, which aspect of technology and data in the electricity space do you think will be of highest priority to your
organisation? Please rank the following options in order of most important to least important (rank 1 being the most important):
Data management and analytics
Energy storage
Internet of Things
Option
Machine learning
Artificial intelligence
Augmented reality
0 1 2 3 4 5
Most Average ranking Least
Data management and analytics – 0.6
Energy storage – 1.8
Internet of Things – 2.3
Machine learning – 2.8
Artificial intelligence – 3.2
Augmented reality – 4.2
ENERGY NEWS 9
www.energynews.co.nzQTR 1 - 2018
The first quarter survey for 2018 went live in March and quizzed the sector on whether it was in agreement or divided
on the key challenges and opportunities ahead. We had more than 350 respondents to the survey and the results were
as follows:
Timeline for change
Question 1
We’ve been tracking this since 2016, asking when all these sector milestones might actually be achieved. How much has industry opinion
changed over two years?
100 MW of solar in NZ
Single solar asset over 5 MW 2018
New generation asset over 50 MW 2017
2016
10,000 electric vehicles
All networks with utility scale batteries
Next network amalgamation
50 retailers*
2018 2020 2022 2024 2030 Never
Date
Milestone 2020 2022 2024 2030 NEVER
100 MW of solar installed?
47% 36% 11% 4% 1%
(68 MW as of 31 Jan 2018)
A single solar project over 5 MW?
12% 28% 31% 21% 8%
(Yealands is the largest at 0.5 MW)
A new generation asset over 50 MW? 16% 30% 25% 21% 9%
10,000 electric vehicles?
76% 17% 6% 1% 0%
(6,603 as of 31 Jan 2018)
Every lines network with utility-scale batteries?
3% 16% 29% 36% 15%
(Three in 2017)
The next distribution network company amalgamation? 28% 35% 21% 7% 8%
50 retail brands to choose from?
13% 23% 16% 13% 35%
(36 as of 31 Oct 2017)
* We increased the number of retailers to 50, from 40 in 2016 and 2017. We are at 47 retail brands as at April 2018!
ENERGY NEWS 10
www.energynews.co.nzQTR 1 - 2018
Ready for a review?
Question 2
The new Government has proposed a “full-scale” review of the electricity market. What’s the biggest issue that should be focused on?
Industry structure – the number
of lines companies
10%
The readiness of the sector
The low-user fixed charge to support increasing
consumer choice, including
new business models that
15% take advantage of new digital
39% and distributed technology
16%
Cost-reflective pricing
20%
Industry structure – separation
of retail and generation
The readiness of the sector to support increasing consumer
choice, including new business models that take advantage of
new digital and distributed technology – 39%
Industry structure – the number of lines companies – 20%
Cost-reflective pricing – 16%
The low-user fixed charge – 15%
Industry structure – separation of retail and generation – 10%
ENERGY NEWS 11
www.energynews.co.nzQTR 1 - 2018
What to build next?
Question 3
Which type of big (e.g. >50MW) generation asset should be prioritised for development over the next 10 to 20 years to best complement the
existing market?
Hydro
Grid-scale 9%
batteries
Geothermal
29%
14%
15%
None
18%
15%
Wind
Gas
Geothermal, it is the best form of reliable baseload power we have – 29%
Wind, it is the best form of renewable energy to complement the abundant power
provided by hydro and geothermal – 18%
Gas, we have plenty of it and it can provide a flexible backup to our unpredictable
renewable generation portfolio – 15%
None… with energy efficiency measures, and the advent of distributed energy
solutions, we shouldn’t be building any new big assets going forwards – 15%
Grid-scale batteries – 14%
New hydro, delivers the most power at the least cost in the long run – 9%
ENERGY NEWS 12
www.energynews.co.nzQTR 1 - 2018
EV support needed
Question 4
In 2017, uptake of electric vehicles exceeded targets set by the previous Government. What option will best help ensure the target of 64,000
EVs on NZ roads is met by 2021?
Fast-track EV car share
and TAAS firms
Nothing can be done
Cap the fringe benefit tax
firms pay on EVs
A bigger consumer marketing 5% 2%
/ education push 6%
A fully-integrated fast-
7% charging network
34%
Cost-reflective
electricity pricing
8%
18%
20%
Subsidise to get
things moving
We don’t need to
do anything
A fully-integrated fast-charging network – 34%
We don’t need to do anything, take-up is already tracking beyond annual targets – 20%
Subsidise to get things moving (excuse the pun) – 18%
Cost-reflective electricity pricing – 8%
A bigger consumer marketing / education push by the electricity sector – 7%
Cap the fringe benefit tax firms pay on EVs at the rate paid on fossil-fuelled cars that
EVs replace – 6%
Nothing can be done, we won’t meet it. There aren’t the range of new and used
vehicles available at the right price levels to satisfy customer requirements – 5%
Fast-track EV car share and TAAS firms, such as Mevo or Yoogo, to establish
themselves around the country – 2%
ENERGY NEWS 13
www.energynews.co.nzQTR 1 - 2018
Is there a best form of energy storage for New Zealand?
Question 5
Given weather dependent renewable electricity generation (such as wind and solar) will be making up more of our energy supply mix, what is
the best form of energy storage to support the system? Rank these from best to worst, with one being the best:
Distributed storage solutions
Increase hydro storage
Option
More gas storage and peaking capacity
Large scale battery storage
Keep Huntly around on gas or coal
1 2 2 3 3 4 4 5 56
Best Average ranking Worst
Distributed storage solutions such as solar plus battery and increased demand
response participation – 2.6
Increase hydro storage (e.g. increased lake operating levels or pumped storage) – 2.7
More gas storage and peaking capacity such as Ahuroa and McKee – 3.0
Large scale battery storage such as the Tesla plant in South Australia – 3.2
Keep Huntly around on gas or coal as it performs many valuable roles – 3.4
ENERGY NEWS 14
www.energynews.co.nzQTR 1 - 2018
Decarbonisation and the electricity sector
Question 6
A Climate Commission is due to be established under the new Government. How will the electricity sector and its customers be affected by an
increased focus on decarbonisation?
Power prices will rise
19% The focus will shift to
emerging distributed
technologies
36%
22%
Security of supply
will worsen
23%
It will require a review of the current
market settings, regulatory and policy
The focus will shift to emerging distributed technologies such as batteries to
help manage the transition – 36%
It will require a review of the current market settings, regulatory and policy, otherwise
the status quo will prevail without government intervention – 23%
Security of supply will worsen. Without new expensive storage options and the
thermal backup we will be more exposed to running out of water in the hydro
lakes – 22%
Power prices will rise. The sector will need to figure out how to keep power prices
steady as it decarbonises – 19%
ENERGY NEWS 15
www.energynews.co.nzQTR 2 - 2018
In June the second quarter survey focused on whether the electricity sector is ‘all about the people’, or something
else. More than 300 people completed the survey to provide us with the following results:
It is the people
Question 1
What is the largest ‘people’ challenge facing the sector right now? Rank the options in order of largest to smallest, with one being the largest
problem:
Difficult to find the right people for the existing
and changing roles
We are not investing in our current workforce with
training and reskilling
Option
Not keeping up with evolving customer needs
and social trends
Not recruiting enough into power sector training
and higher education
Diversity of the current workforce
1 2 3 4 5
Largest Average ranking Smallest
Largest ‘people’ challenge
Difficult to find the right people for the existing and changing roles – 2.3
We are not investing in our current workforce with training and reskilling – 2.9
Not keeping up with evolving customer needs and social trends – 3.0
Not recruiting enough into power sector training and higher education – 3.2
Diversity of the current workforce – 3.6
ENERGY NEWS 16
www.energynews.co.nzQTR 2 - 2018
Do we have the right people?
Question 2
Which part of the sector is most lacking the skills and people needed to deliver the new and improved future electricity system. Rank these in
order of the largest skills deficit to the smallest, with one being the largest:
Power engineers and designers
Data analysts and digital technology experts
Option
Operations and maintenance sector
Regulators and policy makers
1 2 3 4
Largest Average ranking Smallest
Skills deficit
Power engineers and designers – 2.3
Data analysts and digital technology experts – 2.4
Operations and maintenance sector – 2.5
Regulators and policy makers – 2.8
ENERGY NEWS 17
www.energynews.co.nzQTR 2 - 2018
Rise of the machines
Question 3
In terms of impact on jobs and people, which part of the electricity sector workforce will be most enhanced and/or disrupted by technology
such as machine learning, robots, bots, blockchain and Artificial Intelligence? Choose one option:
I can’t imagine jobs being
significantly disrupted
9%
Construction,
operations and
maintenance
14%
Customer facing roles
43%
16%
Office based roles
18%
Engineering and design
Customer facing roles such as customer service and sales – 43%
Engineering and design – 18%
Office based roles such as finance, regulatory and legal – 16%
Construction, operations and maintenance – 14%
I can’t imagine jobs being significantly disrupted by those technologies, it is just hype – 9%
ENERGY NEWS 18
www.energynews.co.nzQTR 2 - 2018
Trust and confidence: winning the hearts and minds of customers
Question 4
How much faith and trust do customers have in the New Zealand electricity sector? Do developments like the Ministerial power price review
have an impact? How much effort should be placed on building trust and who should do it? Pick the option you most agree with:
Retailers are best placed
and should do more
14%
Network companies
need to up their game 16%
As long as the
51% lights stay on,
most consumers
don’t really care
19%
This is a cross-sector issue
To be honest as long as the lights stay on, most consumers don’t really care how
it works and how much it costs as long as they aren’t being charged too much
(excessive profits). The sector will struggle to tackle this because no-one will
listen. – 51%
This is a cross-sector issue that the likes of ERANZ and the ENA should be working
together on so that information is out there for those with questions and concerns
about the sector. – 19%
Network companies need to up their game. Most consumers are fine with their
retailers, it is the network piece that is most misunderstood and creates the most
distrust. Networks need to do more to explain the relationship between service level
and price. – 16%
Retailers are best placed and should do more. Retailers should provide much more
balanced information about what they do, why prices are what they are and how the
sector works. This will build trust and confidence in the sector. – 14%
ENERGY NEWS 19
www.energynews.co.nzQTR 2 - 2018
Diversity in the workforce
Question 5
Where do you think more positive effort should be made to address the workforce diversity challenge (gender, age, ethnicity, etc.) faced by the
electricity sector? Choose the option you most align with:
This is yesterday’s problem
13%
Existing utilities and electricity Schools, universities and
sector organisations need to training organisations
be doing more individually
16% 42%
29%
This is an industry-wide challenge
Schools, universities and training organisations. This is a generational issue.
Start at the beginning with education and encouragement for all people to
consider a future in the electricity sector. – 42%
This is an industry-wide challenge and hence the industry should come together
through their respective industry associations to adopt common industry wide goals.
Only by tackling this together will anything change. – 29%
Existing utilities and electricity sector organisations need to be doing more individually
with their HR policies around hiring new talent, and looking internally to address the
problems. – 16%
This is yesterday’s problem. Actually, the sector has already recognised the problem
and is already tackling the issue with some great progress so I wouldn’t say any
additional effort is needed. – 13%
ENERGY NEWS 20
www.energynews.co.nzQTR 2 - 2018
Bonus question – just because this is very topical and it will be interesting to see where you all sit on this
one!
Question 6
The Government has announced an end to new offshore exploration permits for oil and gas. A positive move? Choose the option you most
align with.
Much ado about nothing
12%
A great move
14% A lose-lose situation
40%
34%
I agree with the direction the
Government is taking
A lose-lose situation. This does nothing to reduce emissions, it worsens our energy
security position, creates sovereign risk for investors, foregoes necessary revenue
to the Crown and reduces the possibility of us finding gas which we could export
and offset coal consumption elsewhere in the world. – 40%
I agree with the direction the Government is taking but their strategy should be improved.
It needs to be more measured, planned and consulted on before decisions are made
with potentially big unintended consequences. – 34%
A great move, New Zealand needs to lead the way and send a signal. In my opinion this
didn’t go far enough. We should do more such as immediately stopping all exploration
and hasten the transition to renewable energy solutions across all sectors of the
economy. – 14%
Much ado about nothing. It was mostly a political move that doesn’t really affect things
either way. No new exploration was likely and it won’t affect our emissions profile one
iota. Now back to something interesting. – 12%
ENERGY NEWS 21
www.energynews.co.nzQTR 3 - 2018
Our third quarter survey asked questions about new policy directions indicated by the Labour Government, one year
into its first term in office. More than 200 respondents provided us their thoughts on the direction of electricity policy
and regulation:
Question 1
We are coming up to 12 months since we had a change of Government for the first time in nine years. With special consideration of the
energy sector, how do you think the coalition is performing so far? Choose one:
I don’t care
I’m not a fan
of most of the
energy initiatives
announced so far
2%
17% Great, the policy and
general direction is
31.5% what this country
needs
Atrocious - 18%
announcements
and signalling are
reducing business
confidence and
the appetite for
investment in the
New Zealand 31.5%
energy sector
Ok, although the new
offshore oil and gas
exploration ban was
worrying
Great, the policy and general direction is what this country needs – 31.5%
Ok, although the new offshore oil and gas exploration ban was worrying – 31.5%
Atrocious - announcements and signalling are reducing business confidence and the
appetite for investment in the New Zealand energy sector – 18%
I’m not a fan of most of the energy initiatives announced so far – 17%
I don’t care – 2%
ENERGY NEWS 22
www.energynews.co.nzQTR 3 - 2018
Question 2
The Electricity Price Review expert advisory panel is due to release its first report for discussion in coming weeks. There are plenty of opinions
on what outcomes will ensure fair pricing going forward. Here is your chance to join in. Of the following options, what are the top three
outcomes you want to see from this review?
Price caps for the retail
component of energy
Creation of a modern
centralised model
Simplification of lines
(such as NZ Power)
company tariffs
Introduction of mandated
pricing guides
4%
5%
7% 25%
Separation of retail
and generation 11%
13%
22%
No change is needed -
leave the market as it is Revised market
13%
arrangements to
enable distributed
energy technology
Stronger regulations to
address energy poverty
Simplification of lines company tariffs – 25%
Revised market arrangements to enable distributed energy technology – 22%
Stronger regulations to address energy poverty – 13%
No change is needed - leave the market as it is – 13%
Separation of retail and generation – 11%
Introduction of mandated pricing guides – 7%
Creation of a modern centralised model (such as NZ Power) – 5%
Price caps for the retail component of energy – 4%
ENERGY NEWS 23
www.energynews.co.nzQTR 3 - 2018
Question 3
The Ministry for the Environment is consulting on changes to the Emissions Trading Scheme. It states the current $25 per tonne price cap on
carbon may be lifted. The carbon price is currently nearing $25. Given this potential change, what price should companies be assuming for
investment decisions? Pick one:
More than $150 $0
$150
$25
6% 2%
4%
20%
$100 27%
41%
$40
$0 – 2%
$25 – 20%
$40 – 41%
$100 – 27%
$150 – 4%
More than $150 – 6%
ENERGY NEWS 24
www.energynews.co.nzQTR 3 - 2018
Question 4
The Government has also set a target for 100% renewable power generation in a year of average hydrology by 2035. What is the best way for
the sector to work towards this? Choose one:
Allow retailers or lines companies to
remotely control residential electrical
appliances - such as hot water
Investigate wider
use of peer-to-peer
electricity retailing Fast-tracking the build of
already-consented renewable
6%
power generation
10%
38%
17%
If this is what the
Government wants then it
needs to provide subsidies
to make it happen
29%
An increased focus on
demand response to
smooth out the peaks
Fast-tracking the build of already-consented renewable power generation – 38%
An increased focus on demand response to smooth out the peaks – 29%
If this is what the Government wants then it needs to provide subsidies to make it
happen – 17%
Investigate wider use of peer-to-peer electricity retailing – 10%
Allow retailers or lines companies to remotely control residential electrical appliances -
such as hot water – 6%
ENERGY NEWS 25
www.energynews.co.nzQTR 3 - 2018
Question 5
With the roles of energy companies evolving quickly it is becoming harder for the Electricity Authority and Commerce Commission to remain fit
for purpose. How do you think the responsibilities of the two watchdogs align with the changing sector? Choose one:
The EA needs a refresh as there are a lot
more individual consumers who are buying
straight from the spot market or becoming
market participants
The ComCom needs the
most work - with lines
companies becoming 8%
generators and retailers,
their role is most changed
10%
They should remain
separate but have
They do what they better alignment
can with a constantly 43%
10% between what they
changing sector require from those they
regulate
29%
There is too much
overlap of functions -
the two should merge
to create a super energy
regulator
They should remain separate but have better alignment between what they require
from those they regulate – 43%
There is too much overlap of functions - the two should merge to create a super energy
regulator – 29%
They do what they can with a constantly changing sector – 10%
The ComCom needs the most work - with lines companies becoming generators and
retailers, their role is most changed – 10%
The EA needs a refresh as there are a lot more individual consumers who are buying straight
from the spot market or becoming market participants – 8%
ENERGY NEWS 26
www.energynews.co.nzParticipants by organisation type
993 RESPONSES
KEY
Distribution 22%
3% 1% 1%
3%
3% Gentailer 17%
Consultant 13%
22% Other 6%
3%
4%
Transmission 6%
4%
Consumer 5%
4%
Professional services company 5%
5%
17%
Generator 4%
5%
Regulator 4%
6%
6% 13% Equipment supplier 4%
Government department/agency 3%
Small retailer 3%
Consumer – large 3%
Upstream oil and gas 3%
Lobby/association 1%
Academic 1%
ENERGY NEWS 27
www.energynews.co.nz—
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For transport of the future, today
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abb.com/smartermobilityYou can also read
